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• W2999653824 abstract "We consider two firms introducing vertically differentiated products to a market ruled by the consumers willingnessto-pay. If consumers behave indifferently to all the products, they would always choose the product which offers highest net utility. The paper considers a more realistic case in which high utility products do not necessarily satisfy the consumers who are sensitive to price enhancements. They are eager to analyze whether choosing a new entrant offering higher quality products is worth the price. In such a setup, competing firms offering vertically differentiated products could employ cooperative bundles. By introducing new products in stages, we show that the market gets divided based on consumers’ willingness to pay more for an expensive product. We have employed computational method on a newly built coopetition model. Our results show that cross bundling can improve both sellers’ profits, also leading to a boost in the entrant’s position in the market. In fact, the applied strategy of simultaneous cooperation and competition in this paper shows that, coopetition drives consumers’ attention to purchase cross-bundles instead of individual products or direct bundles, which in the end benefits both firms. Also it is shown that previous solutions are not necessarily optimal for duopolies practicing coopetition." @default.
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• W2999653824 date "2019-12-31" @default.
• W2999653824 modified "2023-09-26" @default.
• W2999653824 title "A Study on Pricing under a Coopetitive and Duopolistic Market of Vertically Differentiated Products" @default.
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• W2999653824 doi "https://doi.org/10.7232/iems.2019.18.4.776" @default.
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